European Commission reduces growth forecast for 2018
By Liam Sheasby, News Editor
13 Jul 2018
The European Commission has released new growth forecasts for the remainder of 2018 and for 2019, dropping down to a 2.1% growth rate for this year from the initially predicted 2.3%.
The report, published yesterday, gave reduced estimations for average growth across the Eurozone. Italy and the United Kingdom were the two nations expected to register the lowest growth, while Ireland and Malta were two of the highest growth rates predicted.
The revised figures come as a direct response to the ongoing trade tensions between the US and the EU, all of which is going on while oil prices continue to rise and push the Eurozone’s inflation levels higher.
Valdis Dombrovskis, the EU Commission’s Vice-President, referred to “an unfavourable external environment” and suggested it was dampening confidence and hindering economic expansion.
Growth is set to remain strong in 2018 and 2019, at 2.1% this year and 2% next year in both the EU and the euro area.— European Commission 🇪🇺 (@EU_Commission) July 12, 2018
More in the summer interim #ECForecast → https://t.co/Vc4u2iO9KU pic.twitter.com/vaxptbUk9x
The EU Commission is still predicting a 2% growth rate across the Eurozone in 2019, which is unchanged from the previous forecast.